Margin: How to improve it
Delivering project value is dependent on generating robust consistent margins. Overall, the unit cost of building in timber frame is lower than other build methods and with lower prelim costs, you’ll achieve better margins. But its not just about unit cost, its also better cash flow, operational efficiency, programme certainty, product consistency, quality and sustainability. Each one impacts margin. Optimising margin is about getting things right, minimise defects, reduce delays, improve productivity. So, how does DTS offsite help to streamline site operations and improve efficiency that in turn improves margin?
Firstly, our own lean management operations ensure we deliver consistent quality standards and products, and we deliver them just in time. That reduces cost for site plant, storage and waste management.
Efficient installation with our qualified teams, ensures you can take advantage of a faster build. Our construction team work with your site team to support. They supervise all installations, supply schedules, provide digital checking, handover certification, all ensuring smooth programming, less delays or errors and a faster build that provides an overall shorter programme and better margins.
A faster build enables you to open show homes earlier, therefore take reservations earlier. Earlier income improves cashflow and minimises site interest costs.
DTS accredited products give you the reassurance of consistent quality that in turn reduces site defects and delivers quality homes, reducing cost while creating happier customers. It’s fair to say that happy customers improve brand reputation that in turn increases sales and better selling prices, all improving margin.
Find out more in our Shortie, all about margin and why so many housebuilders have turned to our timber build systems to improve margin, quality and productivity.
Understanding how to reduce costs within a construction project is key to a financially viable project. Whether it’s changing material costs, labour shortages or regulatory change, the right assessment will help to identify where savings can contribute to overall margin.
When building in timber frame, there are several differences to building in masonry, each one delivering a saving to traditional masonry build. From your estimators to your senior commercial teams, a timber frame commercial appraisal will identify those savings and help you to realise the true commercial benefits.
A commercial appraisal serves as the core element in the planning, financing, and execution of a project, ensuring that decisions are based on accurate assumptions, calculations and knowledge to deliver returns.
Use our guide to see what to include and more importantly what you can exclude when you build in timber frame.
Reduce labour cost and reliance
Labour challenges have been at the top of the construction agenda for some time. Optimising the labour you have is key to ensuring projects run better without delays. Maximising site productivity is where timber frame can really help.
Our offsite manufacture and quality control measures, enables you to take advantage of our labour and our automated processes to manufacture your building components from wall panels, floor cassettes, roof cassettes and trusses and deliver them just in time. Just in time means we are ready to install on the day of delivery with our qualified install teams. This allows you to reduce initial site labour and focus your bricklayers on completing the outer leaf, so no time wasted in completing homes. A bricklayer can complete two homes built in timber frame at the same time as one home built in masonry. This increases the speed that your site can deliver to, with the reassurance of consistent quality.
Less need for your site labour in the initial stages of a build, reduces cost. Coupled with our efficient build processes, we can help you to improve your productivity and lower your labour costs.
